AMC Theaters could reportedly run out of money in six months.
According to financial analysts at S&P Global, AMC Theaters could run out of money in only six months.
“Given our expectations for a high rate of cash burn, we believe the company will run out of liquidity within the next six months unless it is able to raise additional capital, which we view as unlikely, or attendance levels materially improve.”
AMC Theaters is America’s largest cinema chain. If the company goes out of business, it could spell very bad news for smaller theaters. In addition, for the film industry to survive, people will need to go back to the movies. However, the Coronavirus Pandemic looks like it will last a long time and the current release schedule does not look promising for the next several years. In fact, Wonder Woman 1984 recently moved to Christmas Day, Black Widow was pushed back six months, with the chance Warner Bros. could follow Marvel’s footsteps even longer. Warner Bros may push back Dune to 2021.
In relevant news, Regal Cinemas to close all theaters this week after James Bond No Time To Die got pushed back. The owner of the largest chain of theaters in the UK and Ireland the second largest in the United States, Regal Cinemas, will reportedly close all of its theaters this week. According to Variety, all 543 theaters in the United States will close, which accounts for over 7,000 movie theaters across the country. The Sunday Times reports over 100 theaters in the UK and Ireland will also close.
The entertainment industry’s current business model believes movies require a theatrical release, despite streaming services and experiments. It is clear, the film industry is changing.
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